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REPORT 



3^ 



ON THE 



CHICAGO STEIKE 



OF 



JUNE-JULY, 1894, 



BY THE 



UNITED STATES STRIKE COMMISSION, 

APPOINTED BY THE PRESIDENT JULY 26, 1894, UNDER THE 

PROVISIONS OF SECTION 6 OF CHAPTER 1063 OF 

THE LAWS OF THE UNITED STATES 

PASSED OCTOBER 1. 1888. 



WASHING .-rCVS:. 

GOVERNMENT PRINTING- OFFICE. 
18 9 4V 



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UNITED STATES STRIKE COMMISSION. 



COMMISSIONERS. 

CARROLL D. WRIGHT, Ex-officio Chairman, . . . Washington, D. C. 

JOHN D. KERNAN, . . Utica, N. Y. 

NICHOLAS E. WORTHINGTON, Peoria, III. 

CLERKS. 
EUGENE B. HASTINGS, - . . . . . . . , Utica, N. Y. 

WILLIAM H. RAND, Washington, D. C. 

STENOGRAPHERS. 

CHARLES P. WATSON Peoria, III. 

CYRUS L. WATSON Peoria, III. 

CHARLES W. MORRIS, Jr Washington, D. C. 

U. S. DEPUTY MARSHAL (IN ATTENDANCE). 

H. BARTLETT LINDLEY „ Chicago, III 

3 



CONTENTS. 



Page. 

Letter of transmittal 7 

Introduction 11-14 

Losses and Crimes 14, 15 

Troops, Military, etc 15, 16 

Pullman's Palace Car Company 17-19 

The American Railway Union 19-24 

The General Managers' Association 24-28 

The Pullman strike: Its causes and events 28-36 

Wages - 29-31 

Rents 32,33 

Shop abuses 33 

The strike y 33-36 

Railroad strike 36-43 

Action of federated unions 37-39 

Action of the General Managers' Association 39, 40 

Violence and destruction of property and military proceedings 40-43 

Conclusions and recommendations 43-53 

[The appendices mentioned in the letter of transmittal' and containing the full 

testimouy taken by the Commission, can not be printed until ordered by Congress, 

and for that reason do not appear with this report.] 

5 



LETTER OF TRANSMITTAL. 



United States Strike Commission, 

Washington, D. C, November 14, 1894. 
Sir : We have the honor to hand yon herewith onr report upon the 
controversies which arose between the Illinois Central Eailroad Com- 
pany and the Chicago, Eock Island and Pacific Eailway Company and 
certain of their employes in June last. This report is made in accord- 
ance with your directions of the 26th of July and under the provisions 
of section 6 of chapter 1063 of the laws of tha United States passed 
October 1, 1888. 

The appropriation applicable to the investigation which we have 
conducted was $5,000, a sum which has proved amply sufficient for all 
the expenses of the commission. 

In addition to our report covering our consideration, conclusions, 
and recommendations, we hand you herewith a copy of the testimony 
taken at the hearings conducted by the commission, a digest of the 
suggestions made in writing to the commission, and various other 
matters which have been submitted to it, all bearing upon the difficul- 
ties and controversies considered. These matters are in the form of 
appendices. 

We are, very respectfully, your obedient servants, 

Carroll D. Wright, 
John D. Kern an, 
Nicholas E. Worthington. 
The President. 



\ 



REPORT OF THE COMMISSIONERS. 



REPORT OF THE COMMISSIONERS. 



Upon the 26th of July, 1894, the President of the United States 
issued the following, viz : 

Grover Cleveland, 
President of the United States of America. 
To all to whom these presents shall come, greeting : 

Know ye, that whereas controversies have arisen between the Illi- 
nois Central Railroad Company, and the Chicago, Rock Island and 
Pacific Railway Company, two corporations engaged in the transporta- 
tion of property and passengers between two or more states of the 
United States, and certain of their employes, which controversies may 
hinder, impede, obstruct, interrupt or affect such transportation of 
passengers or property^ 

And, whereas the premises and the representations on behalf of said 
employes being considered, the conditions in my opinion justify and 
require the creation of a temporary commission to examine the causes 
of said controversies, the conditions accompanying the same and the 
best means of their adjustment, as authorized by section t> of chapter 
1063 of the laws of the United States passed on the first day of Octo- 
ber, 1888; 

Now, therefore, by authority of the statute aforesaid, Carroll D." 
Wright, Commissioner of Labor of the United States, who is desig- 
nated in said statute, and John D. Kernan, of the state of New York, 
and Nicholas E. Worthington, of the state of Illinois, hereby appointed 
by the President of the United States commissioners under said act, 
shall pursuant to the provisions of said act, constitute a temporary 
commission for the purposes therein specified. 

The said commission is hereby directed to visit the state of Illinois 
and the city of Chicago, and such other places in the United States as 
may appear proper in the judgment of the commission, to the end 
that it may make careful inquiry into the causes of any pending dis- 
pute or existing controversies and hear all persons interested therein 
who may come before it; and said commission shall exercise all the 
powers, perform all the duties and be subject to all the obligations 
conferred and enjoined by the statute aforesaid upon temporary com- 
missions created pursuant to its provisions. 

In witness whereof I have subscribed my name hereto and caused the 

seal of the United States to be hereunto affixed this twenty - 

r 1 slxtn day °f July in tne y ear °f our Lord one thousand eight 

L ' "J hundred and ninety-four, and of the Independence of the 

United States of America the one hundred and nineteenth. 

Grover Cleveland. 

By the President : 
W. Q. Gresham, 

Secretary of State. 

11 



12 CHICAGO STRIKE. 

Section 6 of chapter 10(33 of the laws of the United States passed 
October 1. 1888. reads as follows: 

That the President may select two commissioners, one of whom at 
least shall be a resident of the state or territory in which, the contro- 
versy arises, who. together with the Commissioner of Labor, shall 
constitute a temporary commission for the purpose of examining the 
causes of the controversy, the conditions accompanying-, and the best 
means for adjusting it: the result of which examination shall be imme- 
diately reported to the President and Congress, and on the rendering of 
such report the services of the two commissioners shall cease. 

•• The controversy'' referred to is defined in section 1 of said chapter 
1063 as follows: 

Whenever differences or controversies arise between railroad or other 
transportation companies engaged in the transportation of property or 
passengers between two or more states of the United States, between 
a territory and state, within the territories of the United States, or 
within the District of Columbia, and the employes of said railroad 
companies, which differences or controversies may hinder, impede, 
obstruct, interrupt, or affect such transportation of property or passen- 
gers. 

At its first meeting in the city of Washington. D. C. held on the 31st 
day of July. 1891. the commission adopted the following preamble and 
resolutions : 

Whereas the President of the United States has appointed the under- 
signed a commission to visit Chicago. Til., and such other places in the 
United States as may be proper, in the # judgment of the commission, to 
the end that it may make careful inquiry into the causes of any pending 
dispute or existing controversies between the Illinois Central Eailroad 
Company and the Chicago. Pock Island and Pacific Pail way Company 
and certain of their employes, and to hear all persons interested therein 
who may come before it: and 

Whereas section 6 of chapter LOGS of the laws of the United States 
passed October 1. 1888. makes it the duty of said commission to exam- 
ine the causes of said controversies, the conditions accompanying and 
the best means of adjusting the same, and to report the results of such 
examination to the President and to Congress: and 

Whereas the questions involved in such controversies affect all 
interstate railroads and their employes; and 

Whereas it is desirable that the report of this commission and 
future legislation, if any, upon the questions at issue between labor, 
whether organized or unorganized, and employers thereof, should be 
based upon all facts having any legitimate bearing upon such ques- 
tions, and should be the result only of clear and well-defined public 
opinion : Therefore. 

Resolved (1). That this commission will meet at the United States 
post-office building in the city of Chicago. 111., on the 15th day of 
August. 1891. at 10 a. in., for the purpose of taking testimony in rela- 
tion to said controversies, and to hear and consider all facts, sugges- 
tions, and arguments as to the causes thereof, the conditions accompa- 
nying, and the best means of adjusting the same, and as to any legis- 



CHICAGO STRIKE. 13 

lation or measures which ought to be recommended in regard to similar 

controversies hereafter. 

(2) That all railroads, labor organizations, and citizens having cither 
a personal or patriotic interest in the right solution of these questions, 
and who can not conveniently attend such public hearing as aforesaid, 
are requested to present their views and suggestions in writing to the 
commission at any time prior to the date of such public hearing. 

(3) That copies of this resolution be given to the press and be sent 
to all railroads engaged in the transportation of property and passen- 
gers between two or more states of the United States and to all labor 
organizations. 

(4) That all communications be addressed to the chairman of the 
United States Strike Commission, Washington, D. 0. 

In accordance with the above resolution the commission met at the 

United States district court room in the city of Chicago, 111., on the 

15th day of August, 1894, when the chairman made the following 

announcement: 

By the act recited in the commission of the President that has just 
been read, this commission is directed to examine the causes, contro- 
versies, and difficulties existing between the roads named and their 
employes at the time the commission of the President was issued. The 
board is constituted as a temporary commission for this purpose, and 
not for the purpose of arbitrating the difficulties that existed. It is 
practically a court of inquiry, and its proceedings will be in accordance 
with the usages of such courts. It will proceed to hear, first, all the 
witnesses on behalf of the employes, and, afterward, those on behalf of 
the corporations named in the commission, and all such witnesses are 
requested to hand their names to the clerk of the commission. Under 
the law parties may appear in person or by counsel, as they may see 
fit, and examine and cross-examine witnesses. 

After all the witnesses have given their testimony the commission 
will then consider arguments and suggestions to be made bearing upon 
the questions before it. All such suggestions and arguments presented 
in writing will be filed and considered by the commission; but the 
question as to how far the commission will hear parties who desire to 
be heard orally will depend upon the time left at the disposal of the 
commission, and will be determined after the testimony is concluded. 
This commission, by the act creating it, possesses all the powers and 
authority which are possessed by and belong to United States commis- 
sioners appointed by the circuit courts of the United States. The 
hours of sitting of the commission will be from 10 a. m. to 12:30 p. m. 
and from 1:30 p. m. to 4 p. m. Parties and their counsel and witnesses 
attending will find seats within the rail. The commission is now ready 
to proceed to business, and the marshal will preserve order, limiting 
the attendance to the comfortable capacity of the room. The clerk 
will now call the first witness. 

During the session of thirteen days at Chicago the commission exam- 
ined 107 witnesses, who were either presented by the parties or cited to 
appear. At an adjourned session, held in Washington, September 26, 
2 witnesses appeared, making a total of 109. 

At the first hearing it .developed that the Pullman employes very 
generally became members of the American Eailway Union in March 



14 CHICAGO STRIKE. 

and a "94. an J that the 19 local unions which they had formed 

had declared a strike ~ Pullina that the railroad companies 

named in the President's mmission were members of the General 
Managers' Association. 

The contest was chierly between the- fcwc irgauizations. and hen»_-e 
nothing relating to the strike at Pullman or Chicago that affected 

bers : either organization conld be excluded as not g emu 
:"^r Jul under bxv aon. As a matte: -:retion. the cc 

to permit the 

lie commission were ••: examine the 
- : and the conditions accompanying the controversies.' 3 

LOSSES AND CRIMES. 

According I the testimony the railroads lost in property destroyed, 
hire of United 9 nty marshals, and other incidental expens 

The k reads is estimated at 

72,91 3 me 3,100 employes at Pullman lost in wages, as e 

,000. About 100,000 employes upon the 24 rail- 
road hieago, all of which were more or less involved in 
the strike, lost in wages, as estimated, at least 81,38 Many of 
-e employes are still adrift and losing wages. 
Beyond these amounts very great ere 
inciden t ally suffered th roughout the country. The suspension of tran s- 
por: d paralyzed a ter 3 and irnpi 
many hardships and much loss upon the great number of people 
whose manufacturing and business opei it, travel, and 

lepend upon and demand regnla isportt 

servi' liroogh C 

During the - in ike th 3 : fcalities. wrests, : li tments, and dismis 
-:rike offenses in Chicago and vicinity were as folic 

dumber sliot and fatally wounded 1- 

<er arrested by the police 

Xuniber arrested nnder United States statutes and against whom indictments 

:: 1 VI 

dumber arrested against whom indictments were not found 119 

The arrests made by the for murder, arson, burglary. 

assault, intimidation, riot i n citing to riot, and rimes. The e 

sed upon by t ial United States grand jury, which convened 

on July 10. 1894, related to obstruction of the mail, forbidden by 

States Revised Statutes; mmit 

tea. forbidden by t the 



CHICAGO STRIKE. 15 

Revised" Statutes; conspiracy in restraint of trade or commerce among 
the several states, forbidden by chapter 047 of the United States laws 
of 1890; conspiracy to injure, oppress, threaten, or intimidate citizens 
in the free exercise and enjoyment of their rights and privileges under 
the constitution and laws of the United States, forbidden by section 
5508 of the United States Revised Statutes. 

Several indictments were found against Eugene V. Debs, George W. 
Howard, L. W. Rogers, and Sylvester Keliher, officers of the American 
Railway Union, under these different statutes. Neither indictments 
nor proceedings were had under the act to regulate commerce, approved 
February 4, 1887, as has been sometimes stated. 

These great losses and many crimes ; the vast numbers, strength, and 
resources of the labor that contended under the leadership of the Amer- 
ican Railway Union upon the one side and Pullman's Palace Car Com- 
pany and the General Managers' Association upon the other; the 
attitude of labor toward capital, disclosed in its readiness to strike 
sympathetically; the determination of capital to crush the strike 
rather than to accept any peaceable solution through conciliation, 
arbitration, or otherwise; the certainty with which vast strikes let loose 
the disreputable to burn, plunder, and even murder; the conversion 
of industrious and law-abiding men into idlers, lawbreakers, or associ- 
ates of criminals; the want brought to many innocent families; the 
transformation of railroad yards, tracks, and stations, as well as the 
busy marts of trade, into armed camps; the possibilities of future 
strikes on more extended lines of union against even greater combina- 
tions of capital — are all factors bearing upon the present industrial 
situation which need to be thoroughly understood by the people and to 
be wisely and prudently treated by the government. 

TROOPS, MILITARY, ETC. 

For the protection of city, state, and federal property, for the sup- 
pression of crime and the preservation of order, the city, county, state, 
and federal forces were utilized as shown in the following statement: 

From July 3 to July 10 the number of Uuited States troops seut to and used 
in Chicago to protect the United States mail service and federal buildings, 
and to sustain the execution of the orders of the United States courts was. 1, 936 
Between July 6 and July 11 the state militia was ordered on duty at Chicago 

and remained so long as needed, to the number of about 4, 000 

Extra deputy marshals, about 5, 000 

Extra deputy sheriffs 250 

Police force of Chicago 3, 000 

Total 14, 186 



16 CHICAGO STRIKE. 

Section 4 of Article iv of the federal constitution reads as follows: 

Tlie United States shall guarantee to every state in this Union a 
republican form of government, and shall protect each of them against 
invasion; and on application of the legislature, or of the executive 
(when the legislature can not be convened), against domestic violence. 

United States troops were not sent into Illinois upon the application 
of the legislature, nor of the executive, against domestic violeuce; i.e., 
violence affecting the state and its government as such. The Presi- 
dent ordered the troops to Chicago — 

(1) To protect federal property. 

(2) To prevent obstruction in the carrying of the mails. 

(3) To prevent interference with the interstate commerce: and 

(4) To enforce the decrees and mandates of the federal courts. 

He did this under the authority of section 5298 of the Revised 

Statutes of the United States, which provides: 

Whenever, by reason of unlawful obstructions, combinations, or 
assemblages of persons, or rebellion against the authority of the gov- 
ernment of the United States, it shall become impracticable, in the 
judgment of the President, to enforce, by the ordinary course of judicial 
proceedings, the laws of the United States within any state or terri- 
tory, it shall be lawful for the President to call forth the militia of any 
or all of the states, and to employ such parts of the land or naval 
forces of the United States as he may deem necessary to enforce the 
faithful execution of the laws of the United States, or to suppress such 
rebellion, in whatever state or territory thereof the laws of the United 
States may be forcibly opposed, or the execution thereof forcibly 
obstructed. 

And of section 5299, which provides : 

Whenever insurrection, domestic violence, unlawful combinations, or 
conspiracies in any srate so obstructs or hinders the execution of the 
laws thereof, and of the United States, as to deprive any portion or 
class of the people of such state of any of the rights, privileges, or 
immunities, or protection, named in the constitution and secured by 
the laws for the protection of such rights, privileges, or immunities, 
and the constituted authorities of such state are unable to protect, or, 
from any cause, fail in or refuse protection of the people in such rights, 
such tacts shall be deemed a denial by such state of the equal protection 
of the laws to which they are entitled under the constitution of the 
United States; and iu all such cases, or whenever any such insur- 
rection, violence, unlawful combination, or conspiracy, opposes or 
obstructs the laws of the United States, or the due execution thereof, 
or impedes or obstructs the due course of justice under the same, it 
shall be lawful for the President, and it shall be his duty, to take 
such measures, by the employment of the militia or the land and naval 
forces of the Unired States, or of either, or by other means, as he may 
deem necessary, for the suppression of such insurrection, domestic vio- 
lence, or combinations. 

Other statutes tend to confer authority in the same direction. 



CHICAGO STRIKE. 17 

PULLMAN'S PALACE CAR COMPANY. 

This is a corporation organized in 1807, with a capital of $1,000,000 
It lias grown until its present paid-up capital is $30,000,000. Its pros- 
perity has enabled the company for over twenty years to pay 2 per cent 
quarterly dividends, and, in addition, to lay up a surplus of nearly 
125,000,000 of undivided profits. From 1867 to 1871 dividends ranging 
from 9£ to 12 per cent per annum were paid. For the year ending July 
1, 1893, the dividends were $2,520,000, and the wages $7,223,719.51. 
For the year ending July 1, 1894, the dividends were $2,880,000, and 
the wages $1,471,7' '1.39. 

The business of the company is — 

(1) The operation of its cars upon about 126,000 miles of railroad, 
being about three-fourths of the railway mileage of the country, uuder 
contracts similar to that in evidence. 

(2) The manufacture and repair of such cars. 

(3) The manufacture of cars of all kinds for the general market. 

(4) The care and management, as owner and landlord, of the town 
of Pullman. 

In 1880 the company bought 500 acres of land, and upon 300 acres 
of it built its plant and also a hotel, arcade, churches, athletic grounds, 
and brick tenements suitable for the use of its employes. The town 
is well laid out and has a complete sewerage and water system. It is 
beautified by well-kept open spaces and stretches, flower beds, and 
lakes. The whole is at all times kept in neat order by the company. 
The main object was the establishment of a great manufacturing busi- 
ness upon a substantial and money-making basis. Efficient workmen 
were regarded as essential to its success, and it was believed that they 
could be secured, held in contentment, and improved as such for their 
own sakes and for the benefit of the company by the accommodations 
and surroundings that were provided. 

The principal church and its parsonage are very attractive structures, 
but often are not occupied because the rental required to be paid is 
higher than any church society is willing to pay to obtain the gospel 
privileges to be thereby secured. In the arcade is a tasteful library of 
books, carefully selected and cared for by the company. Three dollars 
per year is charged for its use, and as many as 250 persons a year out 
of from 4,000 to 5,000 employes and residents have at times, as stated 
by the capable librarian in charge, availed themselves of its opportuni- 
7787 2 



18 



CHICAGO STRIKE. 



ties. It is possible that the air of business strictly maintained there, 
as elsewhere, and their exclusion from any part in its management 
prevent more universal and grateful acceptance of its advantages by 
employes. Men, as a rule, even when employes, prefer independence 
to paternalism in such matters. 

The company provides and pays a physician and surgeon by the year 
to furnish, to injured employes necessary treatment and drugs. It is, 
however, also a part of his employment to secure from the injured party 
a written statement as to the causes of injur}', and it is his custom 
to urge the acceptance of any offered settlement. If suit follows, the 
doctor is usually a witness for the company. TTe have no evidence 
that the doctor has ever abused his confidential relation toward the 
injured employes: but the system is admirably conceived from a busi- 
ness standpoint to secure speedy settlement of claims for damages upon 
terms offered by the company and to protect the company from litiga- 
tion and its results. 

Prior to June, 1893, all went well and as designed: the corporation 
was very prosperous, paid ample and satisfactory wages, as a rule, and 
charged rents which caused no complaint. During this period those 
defects in the system which have recently come to the surface and 
intensified differences, such, for instance, as the refusal to permit the 
employes to buy land in Pullman and build homes there, caused no 
disturbance. 

From the evidence presented by the Pullman Loan and Savings 
Bank, it appears that prior to July 1, 1893, the wages paid enabled 
prudent employes to lay by considerable savings. Upon these the 
bank has paid, uniformly and without any recent reduction, 1 per cent 
per annum. The statement of the bank is as follows: 

DEPOSITS IN PULLMAN LOAN AND SAVINGS BANK. 



Date. 



Employes 
depositing. 



Percent- 
age of em- 
ployes i»f 
all depos- 
itors. 



July 1, 1S93 . . . 
May 1, 1894 . . . 
June 1,1894... 
July 1, 1894 . . . 
August 1, 1894 




p582.380.39 

361 422.834.34 

-- : 383,590.09 
80 364. 454. 5^9 

85 303. 087. 89 



Average 
amount of 

depo.-it. 



$240.11 

251.84 

249. 25 
257. 75 

250. 07 



CHICAGO STRIKE. 19 

About one-half of the accounts arc under $100 and five-sixths under 
$500. These figures illustrate how seriously the cutting down of wages 
and the strike ate into savings. 

As the result of the Pullman system and its growth, when the depres- 
sion of 1803 came, morally calling for mutual concessions as to wages, 
rents, etc.. we niu\ on the one side a very wealthy and unyielding corpo- 
ration, and upon the other a multitude of employes of comparatively 
excellent character and skill, but without local attachments or any inter- 
ested responsibility in the town, its business, tenements, orsurroundings. 

The conditions created at Pullman enable the management at all 
times to assert with great vigor its assumed right to fix wages and rents, 
absolutely, and to repress that sort of independence which leads to labor 
organizations and their attempts at mediation, arbitration, strikes, etc 

THE AMERICAN RAILWAY UNION. 

This is an association of about 150,000 railroad employes, as alleged, 
organized at Chicago on the 20th of June, 1893, for the purpose of 
including railway employes born of white parents in one great brother- 
hood. 

The theory underlying this mpvement is that the organization of dif- 
ferent classes of railroad employes (to the number of about 140,000) 
upon the trades-union idea has ceased to be useful or adequate; that 
pride of organization, petty jealousies, and the conflict of views into 
which men are trained in separate organizations under different lead- 
ers, tend to defeat the common object of all, and enable railroads to use 
such organizations against each other in contentious over wages, etc.; 
that the rapid concentration of railroad capital aud management 
demands a like union of their employes for the purpose of mutual pro- 
tection; that the interests of each of the 850,000 and over railroad 
employes of the United States as to wages, treatment, hours of labor, 
legislation, insurance, mutual aid, etc., are common to all, and hence all 
ought to belong to one organization that shall assert its united strength 
in the protection of the rights of every mem'ber. 

The American Federation of Labor, composed of affiliated unions, 
with a membership of over 500,000, also tends in the direction of 
broader union for labor. The order of the Knights of Labor, with an 
estimated membership of from 150,000 to 175,000, has always advocated 
the solidarity of labor. 

In the American Railway Union there are departments of literature 



20 CHICAGO STKIKE. 

and education, legislation, cooperation, mediation, insurance, etc. The 
organization consists of a general union and of local unions. The gen- 
eral union is formed by representatives of local unions, who elect a 
board of nine directors quadrennially. This board has authority to 
u issue such orders and adopt such measures as may be required to 
carry out the objects of the order/' Any ten white persons employed 
in railway service, except superintendents, etc.. can organize a local 
union. Each local union has its board of mediation, and the chairmen 
of the various local* boards upon a system of railroads constitute a 
general board of mediation for that system. 
The constitution provides that — 

All complaints and adjustments must be first taken up by the local 
union; if accepted by a majority vote it shall be referred to the local 
board of mediation for adjustment, and. if failing, the case shall be 
submitted to the chairman of the general board of -mediation, failing 
in which, they shall notify the president of the general union, who shall 
authorize the most available member of the beard of directors to visit 
and meet with the general chairman of the board of mediation and 
issue such instructions as will be promulgated by the directors. 

Under these provisions it is claimed that no strike can be declared 
except by order of a majority of the men involved. This is a com- 
mendable feature of the union. So long as strikes are resorted to, the 
power to order them should never be vested anywhere except in a 
majority of the employes concerned. If a two-thirds or three-quarters 
vote were required it would be still better. After a strike is ordered 
the board of directors of the general union practically directs its con- 
duct. 

In its profession of principles and purposes in its general and local 
constitutions the American Railway Union proposes to protect and 
promote the interests of its members as wage earners through organi- 
zation and legitimate cooperation. Its constitution reads: 

First. The protection of all members in all matters relating to wages 
and their rights as employes is the principal purpose of the organiza- 
tion. Railway employes are entitled to a voice in fixing wages and in 
determining conditions of employment. Fair wages and proper treat- 
ment must be the return for efficient service, faithfully performed. 
Such a policy insures harmonious relations and satisfactory results. 
The order, while pledged to conservative methods, will protect the 
humblest of its members in every right he can justly claim: but while 
the rights of members will be sacredly guarded, no intemperate demand 
or unreasonable propositions will be entertained. Corporations will 
not be permitted to treat the organization better than the organization 
will treat them. A high sense of honor must be the animating spirit. 
and evenhanded justice the end sought to be obtained. Thoroughly 



CHICAGO STRIKE*. 21 

organized in every department, with a due regard for the right wherever 
found, it is confidently believed that all differences may be satisfac- 
torily adjusted, that harmonious relations may be established and main- 
tained, that the service may be incalculably improved, and that the 
necessity for strike and lockout, boycott and blacklist, alike disastrous 
to employer and employe" and a perpetual menace to the welfare of the 
public, will forever disappear. 

It is encouraging to find that public opinion and a regard for their 
own best interests now demand from labor organizations such a plain 
recognition of conservative principles as the foregoing. The great 
inherent weakness of such organizations at present is that in conten- 
tions with employers these principles are forgotten and that strikes are 
often ordered in hasty and disorderly ways, and are frequently con- 
ducted with attendant violence and lawlessness. As an instance, it 
appears from the evidence that the strike on the Rock Island road was 
ordered at a meeting at Blue Island, attended by both railroad employes 
and by persons not in the employ of the road, and that a rising 
vote was taken without confining it to employes, and that amidst confu- 
sion and uncertainty as to what the vote was or who the voters were, 
a strike upon a great railroad system was inaugurated. 

A recognition of the principle that under this government wrongs 
must be corrected in lawful and orderly ways is absolutely indispen- 
sable; a practical denial of this principle in the conflicts incident to 
strikes would be fatal to both business and society and is unendurable 
under any government. Wage earners can not deny that this would 
be equally true were this government one entirely "of labor, by labor, 
and for labor." 

The omission of a direct provision in the constitution of the Ameri- 
can Railway Union for the punishment or disqualification of a member 
who commits or instigates violence toward persons or property in strikes 
is a usual and a grievous omission, and deserves severe condemnation. 
Until labor organizations take hold of this question vigorously and 
control their own members effectually they are certain to lose sympa- 
thy in their contentions and to be defeated, even though their cause be 
just and deserve success. 

In March, 1894, the employes of Pullman's Palace Oar Company, 
being dissatisfied with their wages, rents, and shop treatment for the 
first time in the history of the town, sought organization, and joined 
the American Railway Union in large numbers. Their meetings were 
held outside of Pullman, because the town has no facilities for such 
purposes. 



22 CHICAGO STRIKE. 

The Pullman company is hostile to the idea of conferring with organ- 
ized labor in the settlement of differences arising between it and its 
employes. The position of the company in this respect is clearly stated 
in the testimony of Mr. Wiekes, its second vice-president, which is here 
cited : 

Q. 223. Has the company had any policy with reference to labor 
unions among its help? — A. So: we have never objected to unions 
except in one instance. I presume that there are quite a number of 
unions in our shops now. 

Q. 224. What are they? — A. I couldn't tell you, but I have heard of 
some of them. I suppose the cabinetmakers have a union, and I sup- 
pose the car builders have a union, and the carvers, and the painters, 
and other classes of men. We do not inquire into that at all. 

Q. 225. That is, unions among themselves in the works. — A. Mem- 
bers of the craft — belonging to other unions — that is, the cabinet union 
might have its headquarters in Chicago and our men would be mem- 
bers of it, but we did not object to anything of that kind. 

Q. 226. The only objection you ever made was to the American Rail- 
way Union, wasn't it? — A. Yes, sir. 

Q. 227. What is the basis of your objection to that union ?— A. Our 
objection to that was that we would not treat with our men as mem- 
bers of the American Eailway Union, and we would not treat with 
them as members of any union. We treat with them as individuals 
and as men. 

Q. 228. That is, each man as an individual, do you mean by that? — 
A. Yes, sir. 

Q. 229. Don't you think, Mr. Wickes, that it would give the corpora- 
tion a very great advantage over those men if it could take them up 
one at a time and discuss the question with them ? With the ability that 
you have got, for instance, where do you think the man would stand 
in such a discussion? — A. The man has got probably more ability than 
I have. 

Q. 230. You think that it would be fair to your men for each one of 
them to come before you and take up the question of his grievance and 
attempt to maintain his end of the discussion, do you? — A. I think so; 
yes. If he is not able to do that, that is his misfortune. 

Q. 231. Don't you think that the fact that you represent a vast con- 
centration of capital and are selected because of your ability to repre- 
sent it, entitles him, if he pleases, to unite with all of the men of his craft 
and select the ablest one they have got to represent the cause? — A. As 
a union ? 

Q. 2*2. Asa union? — A. They have the right; yes, sir. We have 
the right to say whether we shall receive them or not. 

Q. 233. Do you think you have any right to refuse to recognize that 
right in treating with the men? — A. Yes, sir; if we chose to. 

Q. 234. If you chose to. Is it your policy to do that? — A. Yes sir. 

Q. 235. Then you think that you have the right to refuse to recognize 
a union of the men designed for the purpose of presenting through the 
ablest of their members, to your company, the grievances which all com- 
plain of or which any complain of ? — A. That is the policy of the com- 
pany; yes, sir. If \v r e were to receive these men as representatives of 
the unions they could probably force us to pay any wages which they 
saw fit, and get the Pullman company in the same shape that some 



CHICAGO STRIKE. 23 

of the railroads are. by making concessions which ought not to be 
made. 

Q. 236. Don't you think that the opposite policy, to wit, that all 
your dealings are to be with the men as individuals, in ease you were 
one who sought to abuse your power, might enable you to pay to the 
men on the other hand just what you saw lit? — A. Well, of course; a 
man in an official position, if he is arbitrary and unfair, could work a 
great deal of injustice to the men, no doubt about that; but then it is 
a man's privilege to go to work somewhere else. 

Q. 237. % Don't you recognize as to many men, after they have become 
settled in a place at work of that kind, that really that privilege does 
not amount to much ? — A. We find that the best men usually come to 
the front; the best of our men don't give us any trouble with unions or 
anything else. It is only the inferior men — that is, the least competent 
— chat give us the trouble, as a general thing. 

Since the strike, withdrawal from the American Railway Union is 
required from those seeking work. The company does notrecognize that 
labor organizations have any place or necessity in Pullman, where the 
company fixes wages and rents, and refuses to treat with labor organiza- 
tions. The laborer can work or quit on the terms offered; that is the 
limit of his rights. To join a labor organization in order to secure the 
protection of union against wrongs, real or imaginary, is overstepping 
the limit and arouses hostility. This position secures all the advan- 
tage of the concentration of capital, ability, power, and control for the 
company in its labor dealings, and deprives the employes of any such 
advantage or protection as a labor union might afford. In this respect 
the Pullman company is behind the age- 
To admit the Pullman shop employes, however, into the American 
Railway Union as "persons employed in railway service " was not wise 
or expedient. The constitution can not fairly be construed to include 
as eligible members those who build cars and run them in and out 
over private switches. Such loose construction of a labor constitution 
is certain to involve any organization in such an infinite variety 
of conflicting positions and to force it into so many contests demanding 
different and perhaps apparently inconsistent treatment at the same 
time as to curtail its usefulness and threaten its existence. To reach 
out and take in those so alien to its natural membership as the Pullman 
employes, was, in the inception of the organization at least, a mistake. 
This mistake led the union into a strike purely sympathetic and aided 
to bring upon it a crushing and demoralizing defeat. 

It is undoubtedly true that the officers and directors of the Ameri- 
can Railway union did not want a strike at Pullman, and that they 
advised against it, but the exaggerated idea of the power of the 
union, which induced the workmen at Pullman to join the order, led 



24 CHICAGO STRIKE. 

to their striking against this advice. Having struck, the union could 
do nothing less, upon the theory at its base, than support them. 

The union was as yet young ;: its membership was not as extensive 
as it hoped to obtain; its workings had the roughness of incipient 
effort in a new direction; it had recently attained some success in a 
strike upon the "Great Northern, " and had thus aroused extravagant 
expectations among its members generally; great business depression 
prevailed; large numbers were idle and stood ready to accept almost 
any offer of work. For these reasons the officers and directors of the 
union knew that the times were inopportune for striking and did not 
advocate it. 

A union embracing all railroad employes, even, is as yet a doubtful 
experiment. Such a union will have great difficulty in molding itself 
to the complex character, nationalities, habits, employments, and 
requirements of its vast and varied membership. 

The trade unionists argue that their strength lies largely in their 
comparative freedom from these objections; and they insist that the 
basis of the membership of a successful labor organization must be 
substantial similarity in interests among the members. Trades unions 
have a record of success both here and abroad, especially in England, 
which largely sustains their position. They have promoted concilia- 
tion, arbitration, conservatism, and responsibility in labor contentions 
and agreements. 

To preserve the integrity of associations designed to unite and organ- 
ize labor on such a broad basis as that of the American Eailway 
Union but two courses seem open : 

(1) To take a position against all strikes, except as a last resort for 
unbearable grievances, and to seek the more rational methods of con- 
ciliation and arbitration. To this object the power of public opinion 
would lend aid to an extent not now appreciated. 

m 

(2) Conservative leadership, legal status, and the education of mem- 
bers in governmental matters, with the principle in view that in this 
country nothing can accomplish permanent protection and final redress 
of wrongs for labor as an entirety except conservative progress, lawful 
conduct, and wise laws enacted and sustained by the public opinion of 
its rulers — the people. 

THE GENERAL MANAGERS' ASSOCIATION. 

This voluntary, unincorporated association was formed in 1886, and has 
as members the 24 railroads centering or terminating in Chicago. The 



CHICAGO STRIKE. 25 

following' facts relating to these roads for the year ending June 30, 
1894, have been furnished by the Interstate Commerce Commission : 

Number of miles operated a 40, 933 

Number of stockholders 652,088 

Capitalization: 

Capital stock a $818, 569, 004 

Funded debt a$l, 210, 235, 702 

Current liabilities a $79, 747, 911 

Total a $2, 108, 552, 617 

Gross earnings c$325, 825, 726 

Net earnings c $102, 710, 917 

Number of employe's d 221, 097 

In its constitution the object of the association is stated to be "the 
consideration of problems of management arising from the operation 
of railroads terminating or centering at Chicago." It further provides 
that u all funds needed shall be raised by assessments divided equally 
among the members." There are no limitations as to " consideration 
of problems " or " funds " except the will of the managers and the 
resources of the railroad corporations. 

Prior to the recent strike the association was chiefly concerned with 
matters other than wages. It dealt with all questions concerning trans- 
portation centering at Chicago in which the roads had a common inter- 
est. It thus determined the policy and practically fixed the relations 
of all of the roads toward the public as to switching, car service, load- 
ing and unloading cars, weights of live stock, rates, etc., and sustained 
each road in maintaining the position of the association as to these 
matters. 

Until June, 1894, the association dealt incidentally and infrequently 
with wages. There were few railroad controversies as to wages during 
its active life, dating from January 20, 1892. Hence its possibilities as 
a strike fighter and wage arbiter lay rather dormant. The following 
are instances of its action as to wage questions. Its roads fixed a 
"Chicago scale" for switchmen, covering all lines at Chicago. In 

a Data for the Union Stock Yard and Transit Company are from Poor's Manual of 
Railroads, 1894. 

b Not including the Union Stock Yard and Transit Company and the Chicago and 
Northern Pacific Railway. 

c Data for the Union Stock Yard and Transit Company and the Pittsburg, Fort 
Wayne and Chicago Railway are from Poor's Manual of Railroads, 1894. Those for 
the Pittsburg, Fort Wayne and Chicago Railway are for the year ending December 
31, 1893. 

d Not including the Union Stock Yard and Transit Company, the Chicago and 
Northern Pacific Railway, and (except general officers) the Pittsburg, Fort Wayne 
and Chicago Railway. 



26 CHICAGO STRIKE. 

March, 1893, the switchmen demanded more pay from each road. The 

association concluded that they were paid enough — if anything, too 

much. The roads so informed the men. The Switchmen's Mutual Aid 

Association of North America wrote to Mr. St. John, as chairman, 

acquiescing. He, as chairman of the General Managers' Association, 

concluded his reply as follows : 

The association approves the course taken by your body and desires 
to deal fairly with all employes and believes that our switchmen are 
receiving due consideration. 

This seems to show that employes upon association roads are treated 

as under subjection to the General Managers' Association. Mr. St. 

John, the president of the association, testifies as follows: 

The result of this declination on the part of the various companies 
directly to their own committees was a threat on the part of some that 
a strike would occur, and in times of trouble of that kind, or antici- 
pated trouble, it would be the most natural thing in the world for the 
association, or any line member of it, to arrange to protect the interests 
of the company he represented. He could not do otherwise. Arrange- 
ments were made by which agencies were established and men emploj^ed 
to come to Chicago in case of necessity. 

Q. Were those agencies established by the Managers' Association ? — 
A. Yes, sir. 

Q. And they were designed for the purpose of protecting any line in 
the association? — A. That was a member of it. « 

Q. Against anything they deemed to be an attempt to enforce an 
unjust demand? — A. Yes, sir. 

Q. Was that the first occasion the managers ever took action in that 
direction? — A. That was the first occasion it took action during any 
period I was chairman of it. 

This was the first time When men upon each line were brought sharply 

face to face with the fact that in questions as to wages, rules, etc., 

each line was supported by 24 combined railroads. On several other 

occasions similar action was taken; for instance, when some baggage 

agents of the Lake Shore and Michigan Southern Railway wanted 

higher wages, a committee of the association disposed of the matter. 

Mr. St. John was asked: 

Q. Why Avas not that application disposed of by the Lake Shore 
road, instead of by the General Managers' Association? — A. In order 
that it might receive the attention due to the application, and so the 
pay of other roads could be determined, and see if we were under- 
paying them. There has been qnite a number of cases where the prayer 
of the petition has been granted by this committee, and quite a number 
where it has been denied, but only after the most careful investigation. 

This answer is ingenious and suggestive. 

This association likewise prepared for its use elaborate schedules of 
the wages paid upon the entire lines of its 24 members. The proposed 



CHICAGO STRIKE. 27 

object of tbese schedules was to let each road know what other roads 
paid. Finding that the men upon some lines urged increase to corre- 
spond with wages paid elsewhere, a committee of the association pre- 
pared and presented a uniform schedule for all membership roads. It 
was deemed wise not to act upon the report. It was distributed to 
members in November, 1893. This distribution alone enabled the 
report to be used with efficiency as an " equalizer." As the result, 
during 1893 — it being then well understood that as to wages, etc., it 
was an incident of the General Managers' Association to ''assist" each 
road in case of trouble over such matters, one form of assistance being 
for the association to secure men enough through its agencies to take 
the places oY all strikers — reductions were here andthere made on the 
different roads, the tendency and effort apparently being to equalize 
the pay on all lines. 

It is admitted that the action of the association has great weight 
with outside lines, and thus tends to establish one uniform scale 
throughout the country. The further single step of admitting lines 
not running into Chicago to membership would certainly have the 
effect of combining all railroads in wage contentions against all 
employes thereon. 

The commission questions whether any legal authority, statutory or 
otherwise, can be fouud to justify some of the features of the associa- 
tion which have come to light in this investigation. If we regard its 
practical workings rather than its professions as expressed in its con- 
stitution, the General Managers' Association has no more standing in 
law than the old Trunk Line Pool. It can not incorporate, because rail- 
road charters do not authorize roads to form corporations or associa- 
tions to fix rates for services and wages, nor to force their acceptance, 
nor to battle with strikers. It is a u surpation of power not granted. 
If such an association is necessary from a business or economic stand- 
point, the right to form and maintain it must come from the state that 
granted its charter. In theory, corporations are limited to the powers 
granted either directly or by clear inference. We do not think the 
power has been granted in either way in this case. 

The association is an illustration of the persistent and shrewdly 
devised plans of corporations to overreach their limitations and to 
usurp indirectly powers and rights not contemplated in their charters 
and not obtainable from the people or their legislators. An extension of 
this association, as above suggested, and the proposed legalization of 



'28 CHICAGO STRIKE. 

"pooling" would result in an aggregation of power and capital dan- 
gerous to the people and their liberties as well as to employes and their 
rights. The question would then certainly arise as to which shall con- 
trol, the government or the railroads, and the end would inevitably 
be government ownership. Unless ready for that result and all that 
it implies, the government must restrain corporations within the law, 
and prevent them from forming unlawful and dangerous combinations. 
At least, so long as railroads are thus permitted to combine to fix 
wages and for their joint protection, it would be rank injustice to deny 
the right of all labor upon railroads to unite for similar purposes. 

It should be noted that until the railroads set the example a general 
union of railroad employes was never attempted. The unions had not 
gone beyond enlisting the men upon different systems in separate 
trade organizations. These neutralize and check each other to some 
extent and have no such scope or capacity for good or evil as is possi- 
ble under the universal combination idea inaugurated by the railroads 
and followed by the American Eailway Union. The refusal of the 
General Managers' Association to recognize and deal with such a com- 
bination of labor as the American Eailway Union seems arrogant and 
absurd when we consider its standing before the law, its assumptions, 
and its past and obviously contemplated future action. 

THE PULLMAN STRIKE : ITS CAUSES AND EVENTS. 

Pullman's Palace Car Company is in the market at all times to 
obtain all possible contracts to build cars. Its relations with railroads, 
its large capital and surplus, its complete and well-located plant and 
efficient management enable it at all times to meet all competitors on 
at least equal terms. Prior to the business depression of 1893, the 
company was unusually active in building new cars for itself and for 
railroads to meet the expanded demands of general business, and for 
the expected requirements of the Columbian Exposition traffic. Its 
repair department was also full of work. An average number of 4,197 
workmen, during the year ending July 1, 1893, earned $2,760,518.99, or 
an average of $613.86 each. The wages paid were about the same as 
paid elsewhere in the business, Mr. Wickes thinks possibly a little 
higher. 

The depression of 1893 naturally affected the business at once, and 
to a greater extent in some departments than in others. Matters grew 
worse until, in the fall of 1893, the company closed its Detroit shops, 



CHICAGO STRIKE. 29 

employing* about 800, and concentrated its contract and repair business 
at Pullman. The company and the railroads had a surplus of cars for 
the decreased traffic obtainable, and hence pending orders were can- 
celled and car building stopped, except as occasional straggling con- 
tracts were obtained at prices which averaged less than shop cost, 
exclusive of interest upon capital or any charge for depreciation of 
plant or machinery. 

WAGES. 

From September 18, 1893, until May 1, 1894, the company did con- 
tract work at the price of $1,421,205.75, which was $52,069.03, or 3.003 
per cent below shop cost for labor and materials. Against this the loss 
to labor by the reduction of wages paid on this work was over $60,000, 
making the wages of June, 1893, the basis of comparison. It also had 
£1.354,270.06 of unaccepted bids, upon which its similar loss would 
have been $18,303.56, or 1.35 per cent. Assuming that the analysis 
submitted as to the cost of several lots of cars affords a fair basis for 
averaging the whole of the contracts, it appears that the average per- 
centage of cost of material in this contract work was about 75 per 
cent. Hence while the amount of loss was nearly equally divided, it 
seems that the percentage of loss borne by labor in the reduction of 
wages was much greater than that sustained by the company upon 
material. Three-quarters of the loss tor the company and the balance 
for labor would have more fairly equalized the division of loss on these 
contracts. 

Some justification for the determination of the company as to the 
division of loss is claimed from the fact that in addition to its loss the 
company received no interest upon its capital, etc. On the other hand, 
it is an economic principle generally recognized that the shutting down 
of such a plant and the scattering of its forces usually result in a 
greater loss than that exhibited here by the continuance of business. 
The Pullman Company could hardly shut down for seven and a half 
months at a cost and loss of less than 1 per cent upon its capital and 
surplus. To continue running was for its obvious and unfair advan- 
tage so long as it could divide losses equally with its labor. 

The cut in wages during this period averaged about 25 per cent and 
was reached in two ways — 

First, by reducing the price paid for piecework, upon which 2,800 
men are normally employed. This price is claimed to be based upon 



30 CHICAGO STRIKE. 

what a competent workman can do in a day. By testing the men the 
prices are thns fixed so that a man. if neither an expert nor a laggard, 
can earn an amount which is regarded by the company as fair wages. 
The men at Pullman claim that the company during 1893-94 set the 
pace through experts, so that with their forced loss of time an average 
man could earn little more than the rent of his home, owned by the 
company. The company alleges that it simply readjusted piecework 
prices to suit the necessities of the times. The letting of piecework 
and the readjustment of prices therefor is largely in the hands of the 
ki foremen," and hence sometimes subject to abuses unknown to the 
management. 

Second, by reducing the pay in the repair shops, employing about 
800, to correspond with the contract-work prices. The main reason 
given for this reduction was that wages must be kept uniform. Under 
the contracts between railroads and the company the railroads have 
paid, since 1887 _ ruts per mile for each mile run by Pullman « 
This is to pay the Pullman company for keeping the cars in repair, as it 
agrees to do. and is exclusive of the unreduced charges paid to the 
company for the use of berths, seats, etc. The depression of 1893 
caused no change in this mileage rate under existing contracts. The 
company claims, and it is true, undoubtedly, that the depres - 

what reduced this fund by reason of the larger number of idle cars 
than usual to be repaired and stored at some expense, and caused 
some losses from failing roads. The testimony of the Pullman com- 
pany, however, has left its claim in this regard in such loose and 
indefinite shape as to compel the conclusion that the reduction in the 
repair department was not made with reference to these depression 
results, but was part of a plan designed to reduce wages in every 
department to the lowest point possible to be reached in the depart- 
ment most seriously affected by the depression. Some reduction of 
wages in all departments was of course proper under the circumstances, 
but a uniform reduction as between departments so differently situated 
in reference to revenue as the car- building and repair departments 
was not relatively just and fair toward the repair-shop emplo; 

The earnings of employes at Pullman were reduced by these means 
and by lessening the amount of work, as appears in the table imme- 
diately following: 



CHICAGO STRIKE. 
EARNINGS OF CERTAIN EMPLOYES AT PULLMAN, L893-'94. 



31 



Date. 



May 

June 

July 

August ... 
September 
October — 
November . 
December . 



189-1. 



January . 
February 
March ... 
April 



T. Heathoote, in- 
side finisher. 


T. Rhodie, 

painter. 


R. W. Coombs, 
carbuilder. 


J. Curtis, seam- 
stress. 


Hours. 


Amount. 


Hours. 


Amount. 


Hours. 


Amount. 


Hours. 
235J 


Amount. 


252| 


$78. 00 


2441 


$65. 66 


196£ 


$47. 42 


$39. 85 


280| 


96.85 


24 1J 


65. 28 


92 


21.00 


21 2J 


3i. 24 


233J 


69.12 


. 216 


57.05 


170 


38.75 


181 


27.72 


244£ 


62.75 


242 


65.14 


173 


36.91 


197J 


30.18 


167* 

111 


44. 77 


232 


62.62 


94 


21.50 


147£ 


23. 90 


26.92 


230| 


62.04 


m 


7.39 


2301 


34.62 


119 


29.05 


125i 


32. 58 


91 


20.51 


151 


24.39 


229| 


43.85 


52.| 


12.52 


149J 


18.37 


180J 


28. 18 


261 


49.30 


279| 


66.84 


192| 


34.00 


216 


34. 21 


238J 


44.95 


227| 


51.69 


240 


60.00 


184 


25.47 


262J 


51. 53 


254 


51.12 


125 


30.80 


212 


24.92 


185J 


37.77 


226J 


48.65 


60 


9.00 


1971 


22.14 


2, 5881 


634. 86 


2,572 


641. 19 


1, 616| 


345. 68 


2, 3451 


346. 82 



The total amount of wages paid for the years ending July 1, 1893, 
and July 1, 1894, has been stated. 

The above table is presented by the company. Some witnesses 
swear that at times, for the work done in two weeks, they received in 
checks from 4 cents to $1 over and above their rent. The company has 
not produced its checks in rebuttal. 

During all of this reduction and its attendant suffering none of the 
salaries of the officers, managers, or superintendents were reduced. 
Reductions in these would not have been so severely felt, would have 
shown good faith, would have relieved the harshness of the situation, 
and would have evinced genuine sympathy with labor in the disasters 
of the times. 

In its statements to the public, which are in evidence, the company 
represents that its object in all it did was to continue operations for 
the benefit of its workmen and of trades people in and about Pullman 
and to save the public from the annoyance of interrupted travel. The 
commission thinks that the evidence shows that it sought to keep run- 
ning mainly for its own benefit as a manufacturer, that its plant might 
not rust, that its competitors might not invade its territory, that it 
might -keep its cars in repair, that it might be ready for resumption 
when business revived with a live plant and competent help, and that 
its revenue from its tenements mie-ht continue. 



6'1 CHICAGO STEIKE. 

BENTS. 

If we exclude the aesthetic and sanitary features at Pullman, the 
rents there are from 20 to 25 per cent higher than rents in Chicago or 
surrounding towns for similar accommodations. The aesthetic features 
are admired by visitors, but have little money value to employes, 
especially when they lack bread. The company aims to secure 6 
per cent upon the cost of its tenements, which, cost includes a propor- 
tionate share for paving, sewerage, water, parks, etc. It claims now 
to receive less than I per cent. It has some brickmakers' cottages 
upon which, at $8 per month, it must obtain at least -10 per cent 
return upon their value. These are, however, exceptional. The com- 
pany makes all repairs, and heretofore has not compelled tenants 
to pay for them. Under the printed leases, however, which tenants 
must sign, they agree to pay for all repairs which are either necessary 
inary wear and damages by the elements not excepted) or which 
the company chooses to make. 

The company's claim that the workmen need not hire its tenements 
and can live elsewhere if they choose is not entirely tenable. The fear 
of losing work keeps them in Pullman as long 'as there are tenements 
unoccupied, because the company is supposed, as a matter of business, 
to give a preference to its tenants when work is slack. The einidoyes, 
believing that a tenant at Pullman has this advantage, naturally feel 
some compulsion to rent at Pullman, and thus to stand well with the 
management. Exceptional and necessary expert workmen do not 
share this feeling to the same extent and are more free to hire or 
own homes elsewhere. While reducing wages the company made no 
reduction in rents. Its position is that the two matters are distinct, 
and that none of the reasons urged as justifying wage reduction by it 
as an employer can be considered by the company as a landlord. 

The company claims that it is simply legitimate business to use its 
position and resources to hire in the labor market as cheaply as possi- 
ble and at the same time to keep rents up regardless of what wages 
are paid to its tenants or what similar tenements rent for elsewhere: to 
avail itself to the full extent of business depression and competition in 
reducing wages, and to disregard these same conditions as to rents. 
No valid reason is assigned for this position except simply that the 
company had the power and the legal right to do it. 

Prior to the so-called "truck" law in Illinois, rent was deducted 
from the wa°;es. Since then a check is given for the amount of the 



CHICAGO STRIKE. 33 

rent and another for the balance 1 due for wages. There is nothing to 
prevent the payee of the check from cashing it outside of the bank, 
but as the bank is rent collector it presses for the rent and is aided in 
collecting it by knowledge on the part of the tenant that by arrears he 
may lose his job. At the time of the strike about $70,000 of unpaid 
rents bad accumulated. It is fair to say that this accumulation of 
unpaid rent was due to leniency on the part of the company toward 
those who conld not pay the rent and support their families. Neither 
have any actual evictions taken place. The company has held these 
matters in abeyance pending wage reductions and strike difficulties. 

SHOP ABUSES. 

Shop abuses also played some part in the controversy. The employes 
claimed that foremen were arbitrary and oppressive and mistreated the 
men in various ways. It is likely that this arose largely from the 
friction caused by wage reductions and the more stringent shop rules 
needed to repress growing discontent. In times of depression the 
officers, directors, managers, superintendents, and foremen of large 
corporations are forced by their representative positions to bear down 
on labor with snch weight, in order to protect stockholders against 
loss, that labor becomes sore and sensitive in small matters that might 
otherwise be overlooked. When these minor grievances were presented 
to the management a speedy investigation and correction were promised. 
The investigation was promptly begun before the employes struck. 

THE STRIKE. 

The reductions at Pullman after September, 1893, were the result of 
conferences among the managers; the employes for the first time knew 
of them when they took effect. No explanations or conferences took 
place until May 7 and 9 in regard thereto between the employes and 
the officers of the company. For the reasons stated the employes at 
Pullman were during the winter in a state of chronic discontent. 
Upon May 7 and 9 a committee of 46 from all the departments waited 
upon the management and urged the restoration of wages to the basis 
of June, 1893. The company refused this, and offered no concession as 
to wages whatever, maintaining and explaining that business condi- 
tions did not justify any change. The company based its entire con- 
tention as to every department upon the facts in reference to car build- 
ing to which we have alluded, and offered to show its books and figures 
as to the cost and selling prices of cars. This offer, on account of the 
7787 3 



34 CHICAGO STRIKE. 

strike intervening, was not acted upon. Had it been, it would have 
"resulted in the figures we have noted as to ear-building contracts. 
The purpose of the management was obviously to rest the whole matter 
upon cost, etc., in its most seriously crippled department, excluding- 
from consideration the facts as to wages in the repair department, to 
which we have alluded. 

The demand of the employes for the wages of June, 1893, was clearly 
unjustifiable. The business in May, 1894, could not pay the wages of 
June, 1893. Reduction was carried to excess, but the company was 
hardly more at fault therein than were the employes in insisting upon 
the wages of June, 1893. There was little discussion as to rents, the 
company maintaining that its rents had nothing to do with its wages 
and that its revenue from its tenements was no greater than it ought 
to receive. Miss Curtis testified as to this as follows : 

A. We stated our grievances to Mr. Wickes and told him we wanted 
our wages raised; he said it was impossible to raise them as the com- 
pany was losing money on its contracts, and it could not possibly raise 
our wages a cent; we then asked if they did not think they could lower 
rents a little; he said, no, it was utterly impossible to lower the rents 
one penny, as they were only receiving about 3 per cent on their 
investment now, and were losing money on contracts just to enable 
their men to have work. Mr. Wickes then appointed another inter- 
view with us the following Wednesday, and we went down again and 
saw Mr. Pullman; he said he could not raise our wages nor lower our 
rents. 

The company had a legal right to take this position, but as between 
man and man the demand for some rent reduction was fair and reason- 
able under all the circumstances. Some slight concession in this regard 
would probably have averted the strike, provided the promise not to 
discharge men who served upon the committee had been more strictly 
regarded. 

The next day, May 10, three of the committee were laid off by fore- 
men for alleged lack of work, not an unusual proceeding. Those who 
made the promise had nothing to do with this action and deny knowl- 
edge of it at the time. The foremen who did it are suspected by the 
employes of concluding that some laying off of committeemen just at 
that crisis would have a good effect and would accord with the policy 
and general views of the company. The foremen, however, deny this. 
This incident was inopportune and unfortunate, to say the least, and 
ought to have been more carefully guarded against by the company. 
An explanation of this occurrence was not asked for by the employes, 
as it ought to have been, before striking. 



CHICAGO STRIKE. 35 

On tlie evening - of May 10 the local unions met and voted to strike 
at once. The strike occurred on May 11, and from that time until the 
soldiers went to Pullman, about July 4, three hundred strikers were 
placed about the company's property, professedly to guard it from 
destruction or interference. This guarding of property in strikes is, as 
a rule, a mere pretence. Too often the real object of guards is to pre- 
vent newcomers from taking strikers' places, by persuasion, often to 
be followed, if ineffectual, by intimidation and violence. The Pullman 
company claims this was the real object of these guards. The strikers 
at Pullman are entitled to be believed to the contrary in this matter, 
because of their conduct and forbearance after May 11. It is in evi- 
dence, and uncontradicted, that no violence or destruction of property 
by strikers or sympathizers took place at Pullman, and that until July 
3 no extraordinary protection was had from the police or military 
against even anticipated disorder. 

Such dignified, manly, and conservative conduct in the midst of 
excitement and threatened starvation is worthy of the highest type of 
American citizenship, and with like prudence in all other directions 
will result in due time in the lawful and orderly redress of labor 
wrongs. To deny this is to forswear patriotism and to declare this 
government and its people a failure. 

As soon as the strike was declared the company laid off its 600 
employes who did not join the strike, and kept its shops closed until 
August 2. During this period the Civic Federation of Chicago, com- 
posed of eminent citizens in all kinds of business and from all grades 
of respectable society, called upon the company twice to urge concili- 
ation and arbitration. The company reiterated the statement of its 
position, and maintained that there was nothing to arbitrate; that the 
questions at issue were matters of fact and not proper subjects of 
arbitration. The Civic Federation suggested that competition should 
be regarded in rents as well as in wages. The company denied this. 
Wages and rents were to it separate matters; the principles applicable 
to one had no relation to the other. Later it gave the same answer to a 
committee of its employes. Upon June 15 and 22 it declined to receive 
a ny communication from committees of the American Eailway Union, 
one proposition of that body being that the company select two arbitra- 
tors, the court two, and these four a fifth, to determine whether there 
was anything to arbitrate. The company also refused to consider any 
arbitration at the solicitation of the common council of Chicago, and 



36 CHICAGO STRIKE. 

repeated its stereotyped answer that there was nothing to arbitrate 
when appealed to by Mayor Pingree, of Detroit, himself a large manu- 
facturer, whom Mayor Hopkins accompanied to Pullman. At that 
interview Mayor Pingree claimed to have telegrams from the mayors 
of over fifty of the largest cities, urging that there should be arbitra- 
tion. 

RAILROAD STRIKE. 

Between June 9 and June 26 a regular convention of the American 
Railway Union was held with open doors at Chicago, representing 165 
local unions and about 150,000 members, as claimed. The Pullman 
matter was publicly discussed at these meetings before and after its 
committees above mentioned reported their interviews with the Pull- 
man company. On June 21 the delegates, under instructions from 
their local unions, unanimously voted that the members of the union 
should stop handling Pullman cars on June 26 unless the Pullman 
company would consent to arbitration. On June 26 the boycott and 
strike began. The strike on the part of the railroad employes was a 
sympathetic one. ]STo grievances against the railroads had been pre- 
sented by their employes, nor did the American Railway Union declare 
any such grievances to be any cause whatever of the strike. To simply 
boycott Pullman cars would have been an incongruous step for the 
remedy of complaints of railroad employes. Throughout the strike the 
strife was simply over handling Pullman cars, the men being ready to 
do their duty otherwise. The contracts between the railroads and the 
Pullman company as to Pullman cars created such close relations 
between them as to increase the natural sympathy of organization 
between the members of the American Railway Union upon railroads 
and their brothers at Pullman. It is also apparent that the readiness 
to strike sympathetically was promoted by the disturbed and apprehen- 
sive condition of railroad employes resulting from wage reductions on 
different lines, blacklisting, etc., and from the recent growth and develop- 
ment of the General Managers' Association, which seemed to them a 
menace. Hence the railroad employes were ripe to espouse the cause 
of the Pullman strikers. In* some instances they struck in disregard 
of existing contracts between their different organizations and the rail- 
roads, notably upon the Illinois Central. They evaded the responsi- 
bility of their organizations for this conduct by claiming to act as 
individuals. They justified themselves under the idea of balancing 
wrongs. 



CHICAGO STRIKE. 37 

After June 2(> the officers and agents of the union managed and 
urged on the strike at every available point upon the railroads center- 
ing at Chicago until it reached proportions far in excess of their 
original anticipations, and led to disorders beyond even their control. 
Urgent solicitations and appeals to strike and to stand firm continued 
in the many public meetings held each day in and about Chicago, and 
appear in the telegrams sent about the country. 

On July 7 the principal officers of the American Railway Union were 
indicted, arrested, and held under #10,000 bail. Upon July 13 they 
were attached for contempt of the United States court in disobeying 
an injunction issued on July 2 and served on the 3d and 4th, enjoining 
them, among other things, from compelling, or inducing by threats, 
intimidation, persuasion, force, or violence, railroad employes to refuse 
or fail to x>erform their duties. It is seriously questioned, and with 
much force, whether courts have jurisdiction to enjoin citizens from 
"persuading" (a) each other in industrial or other matters of common 
interest. However, it is generally recognized among good citizens 
that a mandate of a court is to be obeyed until it is modified and cor- 
rected by the court that issued it. 

ACTION OF FEDERATED UNIONS. 

Upon July 12, at the request of the American Railway Union, about 
25 of the executive officers of national and international labor unions 
affiliated with the American Federation of Labor met at Chicago. The 
situation was laid before them. The conference concluded that the 
strike was then lost; that a general sympathetic strike throughout the 
country would be unwise and inexpedient, and, at the time, against the 
best interests of labor. This conference issued a strong and temperate 
address to members, expressing sympathy with the purposes of the 
American Railway Union, advising those on strike to return to work y 
and urging that labor organize more generally, combine more closely, 
and seek the correction of industrial evils at the ballot box. To some 
extent the trade unions of Chicago had struck in sympathy, but this 
movement was checked by the action of the conference of the 12th and 
extended no further. This action indicates clearer views by labor as 
to its responsibilities, the futility of strikes, and the appropriate 
remedies in this country for labor wrongs. 

Upon July 13 the American Railway Union, through the mayor of 



a See decision of Mr. Justice Harlan in the Appendix. 



38 CHICAGO STRIKE. 

Chicago, sent a communication to the General Managers* Association 
offering to declare the strike off. provided the men should be restored 
to their former positions without prejudice, except in cases where they 
had been couriered of crime. The General Managers' Association in 
advance advertised that it would receive no communicntiou whatever 
from the American Eailway Union, and wheu received returned it 
unanswered. With reference to this. John M. Egau. strike manager of 
the General Managers' Association, testified as follows: 

A few days later I was out of the office for awhile, and on my return 
I found the mayor and Alderman McGillen talking to Mr. St. John. 
I went into the room, and Mr. St. Johu told me the mayor had come 
there with a letter signed by the officers of the American Eailway 
I nion. I told the mayor I thought he should nor have permitted him- 
self to be a messenger boy for those parties, and that I further consid- 
ered that the General Managers' Association should not receive any 
such document. The document was left there, and during the after- 
noon I was requested to take the document back to the mayor. 1 
endeavored to find him. but found he had goue to Kensington. I 
endeavored to reach him by telephone, but as it was growing late and 
I could not locate him I took the document back to the city hall and 
gave it to the chief of police, with the request that he place it on the 
mayors desk so he would receive it early the next morning. I wrote 
a letter in which I stated to the mayor that the General Managers' 
Association did not consider they should receive any such document. 
On my return to the office I was able to locate the mayor at Kensing- 
ton, but they told me he had retired for the night: but I telegraphed 
the contents of the letter, with a request to the party who received it 
that he deliver it to the mayor that night. That is all I know about 
any overtures. 

Questions by Commissioner Worthi^gtox: 

18. Was there anything in the document itself that was offensive or 
insulting to you ? — A. The document was printed in the papers that 
afternoon and the next morning, and I think it speaks for itself. 

19. Did you consider it offensive or insulting ? — A. I considered that 
any party who attacked railway companies as the American Eailway 
TTnion had done, and were whipped, as I considered they were, it was 
displaying considerable cheek to dictate the terms of their surrender. 

20. You do not answer my question. I asked you if there was any- 
thing in the document itself that was offensive or insulting to you? — 
A. I don't know as I would be the judge of that. 

21. What is your opinion about it.' — A. I have not the authority to 
say whether it was insulting to the general managers, or anything of 
that kind. 

22. Did you return it on that account — because the terms of the 
document were offensive or insulting to you or to the managers? — A. 
Well, the managers requested it to be returned. 

23. Was that the reason you returned it ? — A. That was the reason I 
returned it: yes. sir. 

24. Is it not a fact that, instead of being offensive in its character 
so far as the composition was concerned, it was a document courteously 
composed and looking toward the settlement of a great and destructive 



CHICAGO STRIKE. 3D 

strike that was then in progress? — A. Well, as I said, the document 
speaks for itself. L considered that the matter was settled then, prac- 
tically. 

In reply to this Mayor Hopkins testified: 

I want to say in this connection that the papers quote Mr. Egan as 
saying in his testimony that he told the mayor he should not be a mes- 
senger boy for those men. 1 want to say emphatically that Mr. Egan 
never said that to me; I don't think I would have allowed him to say it. 

At this date, July 13. and for some days previous, the strikers had been 
virtually beaten. The action of the courts deprived the American Rail- 
way Union of leadership, enabled the General Managers' Association to 
disintegrate its forces, and to make inroads into its ranks. The mobs 
had worn out their fury, or had succumbed to the combined forces of the 
police, the United States troops and marshals, and the state militia. 
The railroads were gradually repairing damages and resuming traffic 
with the aid of new men and with some of those strikers who had not 
been offensively active or whose action was laid to intimidation and 
fear. At this juncture the refusal of the General Managers' Asso- 
ciation to treat with the American Railway Union was certainly not 
conciliatory; it was not unnatural, however, because the Association 
charged the American Railway Union with having inaugurated an 
unjustifiable strike, laid at its door the responsibility for all the disor- 
der and destruction that had occurred, and, as the victor in the fight, 
desired that the lesson taught to labor by its defeat should be well 
learned. 

The policy of both the Pullman company and the Railway Managers' 
Association in reference to applications to arbitrate closed the door to 
all attempts at conciliation and settlement of differences. The com- 
mission is impressed with the belief, by the evidence and by the 
attendant circumstances as disclosed, that a different policy would 
have prevented the loss of life and great loss of property and wages 
occasioned by the strike. 

ACTION OF GENERAL MANAGERS' ASSOCIATION. 

On June 22 an officer of the Pullman company met the general man- 
agers by invitation, and the general managers, among other things, 
resolved : 

That we hereby declare it to be the lawful right and duty of the said 
railway companies to protest against said proposed boycott; to resist 
the same in the interest of their existing contracts and for the benefit 
of the traveling public, and that we will act unitedly to that end. 



- . :-:ca->j s. _ yyy^ 

From June 22 until the practical end of the strike the General Man- 
agers* Association directed and controlled the contest on the part of the 

:y:L_ :-. Is ">■.■_ . :Ly . . _iL :_r '. : r - . ~ . . — :■: ..L. :"_r : : A-Li :■: yy;yo:y ~-~ 

eon Sections and insure the protection of each. On June 26 we find in 

the proceedings of the association the following statement: 

A general discussion of the situation followed. It was sugge 
that some common plan of action ought to be adopted in case empl 
refused to do switching of passenger trains with Pullman c 
willing to continue all of their other work, and it was the general expres- 
sion that in case any man refused to do his duty he would be discharged. 

Lit I _~ ::-:- — r- t — " ■".'.".>'_ r : r r...:-- : - Ly:y_ _tY _t1:L .v- 
the men arrive*! they were cared for and assigned to duty upon Qm 
different lines : a bureau was started to furnish information to the pi 
:Lr ". ri ; '. '-- ~:tr~.---. : : : Is ~-'.- . yLI-L ::_*: : y:t:ty:- ,jZ-L . ; y_- 
yy -■:..:_ .-. I.v_i :y_yya! ::r-:-:~ L:::^s: :L- .ririL Yi^i_-rs met 
daily to hear reports and to direct proceedings; constant communica- 
tion was kept up with the civil and military authorities as to the n_ 
ments and assignments of police, marshals, and troops. Each road did 
what it could with its operating forces, but all the leadership,, dire* y 
and concentration of power, resources, and influence on the part or L - 
railroads were centered in the General Manager - Assd . n That 
association stood for each and all of its 24 combined members, and all 
that they could command? in fighting and crushing the strike. 

VXC1Z jYX» BKSIRUCTIOIS; OF PROPERTY AMI IJTTxTTARY PRO- 

y z : : : : • 

The figures given as to losses, latahfe - lesti action of property, and 
arrests for crime tell the story of violence, intimidation, and mob 
better than it can be described. Chi g is vast metropolis^ the cen- 
ter of an activity and growth unprecedented in hi - I combining 
all that this implies. Its lawless elements are at present augmented 
by shiftless adventurers and criminals attracted to it by the Zxpo- 
sition and impecunionsly stranded in its midst. In the mobs were also 
actively present many of a certaii objectionable foreigners, who 
are being precipitated upon us by unrestricted immigration. 8 
dangerous place for such a strike could be cho sen 

The strike, as a strike and as is usual with strikes, pre - 
opportunity to these elements to burn and plunder, and to violate 
laws and ordinances of the city, state, and nation. Superintendent of 
P ;"_:.r H-irYYi - - — - y - - :•:•-! : ~- : 



CHICAGO STRIKE. 41 

On the 26th of .June the mayor directed me to use the whole police 
force hi preserving the peace, protecting property, and preventing vio- 
lence, and from that time until the arrival of the troops I think I suc- 
ceeded pretty well. 80 far as I understood, there had not been very 
much violence or depredations committed prior to the 3d of July, when 
the troops arrived. At thai time the indications looked bad and the 
arrival of the troops I think teas opportune. 

Q. Why do you say the situation was threatening, then? — A. At 
that time my police force had been on duty constantly for nine or ten 
days and the calls from the railway companies were so numerous and 
became so frequent that it more than absorbed the whole police depart- 
ment to supply all calls and demands. I had at that time 3.000 or 3,100 
men in service, and every one of them was engaged in that particular 
business of preventing violence. 

Q. Did you have to keep part of that force in other portions of the 
city ? — A. Yes, sir; this trouble extended all over the city. This city 
is practically a network of railways, and the territory being quite large — 
about 195 square miles, I believe — and to cover that territory, Avhich is 
tilled with railway tracks, yards, towers, switch houses, and freight 
houses, it can readily be seen that it would absorb the whole police 
force. 

This appears to be a correct statement of the situation prior to July 
3. The police force of Chicago, including the reserves, is not more 
than sufficient for the protection of the city under normal conditions, 
and it was during the strike placed under excessive and unusual strain. 
As a body, the police were courageous and efficient. We have in the 
evidence the authority of railroads for this statement. Some railroads 
charged the police with inefficiency and with failing to discharge their 
duties through sympathy with strikers. These charges have not been 
proved. The mayor directed suspension and discharge for any such 
cause, and some suspensions occurred on charges, but investigation dis- 
closed no evidence to sustain them. The disorders at Blue Island were 
outside the city of Chicago. Appropriate orders for the police to coop- 
erate with the troops were issued. That policemen sympathized with 
strikers rather than with the corporations can not be doubted, nor 
would it be surprising to find the same sentiment rife among the mili- 
tary. These forces are largely recruited from the laboring classes. 
Indeed, the danger is growiug that in strike wars between corporations 
and employes, military duty will ultimately have to be done by others 
than volunteers from labor ranks. 

The military and police confined themselves to their duty of arrest- 
ing criminals, dispersing mobs, and guarding property. United States 
deputy marshals, to the number of 3,600, were selected by and appointed 
at request of the General Managers' Association, and of its railroads. 
They were armed and paid by the railroads, and acted in the double 



-:: 




CHICAGO STRIKE. 43 

rails, crippling of interlocking systems, the detaching, side tracking, 
and derailing" of cars and engines, placing of coupling pins in engine 
machinery, blockading tracks with cars, and attempts to detach and 
run in mail cars. The commission is of opinion that offenses of this 
character, as well as considerable threatening and intimidation of those 
Taking strikers' places, were committed or instigated by strikers. 

The mobs that took possession of railroad yards, tracks, and cross- 
ings after July 3, and that stoued, tipped over, burned, and destroyed 
cars and stole their contents, were, by general concurrence in the tes- 
timony, composed generally of hoodlums, women, a low class of for- 
eigners, and recruits from the criminal classes. Few strikers were 
recognized or arrested iu these mobs, which were without leadership, 
and seemed simply bent upon plunder and destruction. They gathered 
wherever opportunity offered for their dastardly work, and, as a rule, 
broke and melted away when force faced them. In the view that this 
railroad strike was wrong; that such mobs are well known to be inci- 
dental to strikes, and are thereby given an excuse and incentive to 
gather and to commit crime, the responsibility rests largely with the 
American Railway Union; otherwise that association, its leaders, and 
a very large majority of the railroad men on strike are not shown to 
have had any connection therewith. Labor advocates contend that 
strikes are the last resort; that they are the industrial war measures 
of labor to assert and obtain the rights which humanity, morality, and 
changed conditions demand; that labor can not otherwise arouse inter- 
est in its demands, and that, hence, labor is no more responsible for the 
public disorders and calamities that attend strikes than are the employ- 
ers who provoke them. Many impartial observers are reaching the 
view that much of the real responsibility for these disorders rests with 
the people themselves and with the government for not adequately 
controlling monopolies and corporations, and for failing to reasonably 
protect the rights of labor and redress its wrongs. None assert that 
laws can completely remedy contentions as to wages, etc., but many do 
insist that something substantial can be accomplished in this direction 
if attempted honestly, reasonably, and in good faith. 

CONCLUSIONS AND RECOMMENDATIONS. 

The commission has tried to find the drift of public opinion as to strikes, 
ooycotts, and labor disputes upon railroads, and to find their remedy. 
The invitation freely extended in this direction has brought before the 



44 CHICAGO STRIKE. 

coniinission many expressions of views, orally and by written communi- 
cations. A condensation of these latter is presented with, this report. 
In reaching its conclusions the commission has endeavored, after care- 
ful consideration, to give due weight to the many suggestions and argu- 
ments presented. It is encouraging to find general concurrence, even 
among labor leaders, in condemning strikes, boycotts, and lockouts as 
barbarisms unfit for the intelligence of this age, and as, economically con- 
sidered, very injurious and destructive forces. Whether won or lost is 
broadly immaterial . They are war — internecine war — and call for prog- 
ress to a higher plane of education and intelligence in adjusting the rela- 
tions of capital and labor. These barbarisms waste the products of both 
capital and labor, defy law and order, disturb society, intimidate capi- 
tal, convert industrial paths where there ought to be plenty into high- 
ways of poverty and crime, bear as their fruit the arrogant flush of 
victory and the humiliating sting of defeat, and lead to preparations 
for greater and more destructive conflicts. Since nations have grown 
to the wisdom of avoiding disputes by conciliation, and even of settling* 
them by arbitration, why should capital and labor in their dependence 
upon each other persist in cutting each other's throats as a settlement of 
differences ? Official reports show that much progress has been made in 
the more sane direction of conciliation and arbitration even in America. 
Abroad they are in advance of us in this policy. Were our population 
as dense and opportunities as limited as abroad, present industrial 
conditions would keep us much more disturbed than we now are by 
contests between capital and labor. 

In England, prior to 1824, it was conspiracy and felony for labor to 
unite for purposes now regarded there by all classes as desirable for 
the safety of the government, of capital, and for the protection of the 
rights of labor. All industrial labor is there, as a rule, covered by- 
unions trained to greater conservatism through many disastrous con- 
flicts under harsh conditions and surroundings. Capital abroad pre- 
fers to deal with these unions rather than with individuals or mobs, 
and from their joint efforts in good faith at conciliation and arbitra- 
tion much good and many peaceful days have resulted. In fifteen of 
our states arbitration in various forms is now provided bylaw: the 
United States and eleven states have sanctioned labor organizations 
by statute. Some of our courts, however, are still poring over the law 
reports of antiquity in order to construe conspiracy out of labor unions. 
We also have employers who obstruct progress by perverting and mis- 



CHICAGO STRIKE. 45 

applying the law of supply and demand, and who, while insisting upon 
individualism for workmen, demand that they shall be let alone to 
combine as they please and that society and all its forces shall protect 
them in their resulting' contentions. 

The general sentiment of employers, shared in by some of the most 
prominent railroad representatives we have heard, is now favorable to 
organization among employes. It results in a clearer presentation and 
calmer discussion of differences, instils mutual respect and forbearance, 
brings out the essentials, and eliminates misunderstandings and im- 
material matters. To an ordinary observer, argument to sustain the 
justice and necessity of labor unions and unity of action by laborers is 
superfluous. 

The rapid concentration of power and wealth, under stimulating legis- 
lative conditions, in persons, corporations, and monopolies has greatly 
changed the business and industrial situation. Our railroads were 
chartered upon the theory that their competition would amply protect 
shippers as to rates, etc., and employes as to wages and other conditions. 
Combination has largely destroyed this theory, and has seriously dis- 
turbed the natural workiug of the laws of supply and demand, which, 
in theory, are based upon competition for labor between those who 
4k demand" it as well as among those who supply it. The interstate 
commerce act and railroad-commission legislation in over thirty states 
are simply efforts of the people to free themselves from the results of 
this destruction of competition by combination. Labor is likewise 
affected by this progressive combination. While competition among 
railroad employers of labor is gradually disappearing, competition 
among those who supply labor goes on with increasing severity. 
For instance, as we have shown, there is no longer any competitive 
demand among the 24 railroads at Chicago for switchmen. They have 
ceased competing with each other; they are no longer 24 separate and 
competing employers; they are virtually one. To be sure, this combi- 
nation has not covered the whole field of labor supply as yet, but it is 
constantly advancing in that direction. Competition for switchmen's 
labor still continues with outside employers, among whom, again, we 
find a like tendency to eliminate competitive demand for labor by 
similar combination. In view of this progressive perversion of the laws 
of supply and demand by capital and changed conditions, no man can 
well deny the right nor dispute the wisdom of unity for legislative and 
protective purposes among those who supply labor. 



■4 CHICAGO STRIKE. 

However nien may differ about the propriety and legality of labor 
unions, we mast all recognize the fact that we have them with us to 
and to grow more numerous and powerful. Is it not wise to fully 
recognize them hy law: to admit their necessity as labor guides and 
protectors, to conserve their usefulness, increase their responsibility, 
and to prevent their follies and aggressions by conferring upon them 
h privileges enjoyed by corporations, with like proper restrictions and 
regulations f " The growth of corporate power and wealth has been the 
marvel of the past fifty years. Corporations have undoubtedly bene- 
fited the country and brought its resources to our doors. It will not be 
surprising if the marvel of the next fifty years be the advancement of 
labor to a position of like power and responsibility. We have hereto- 
fore encouraged the one and comparatively neglected the other. Does 
not wisdom demand that each be encouraged to prosper legitimately 
and to grow into harmonious relations of equal standing and responsi- 
bility before the law! This involves nothing hostile to the tine inter- 
ests yid rights of either. 

A broad range of remedies is presented to the commission as to the 
best means of adjusting these controversies, such as government con- 
trol or ownership of railroads; compulsory arbitration; licensing of 
employes: the single-tax theory; restriction of immigration and exclu- 
sion of pauper labor; protection of American industries; monetary 
legislation; suppression of trusts and combinations: written contracts 
requiring due notice of discharge by employers and of leaving service 
by employes; United States labor commission to investigate and fix 
hours of labor, rates of wages, etc; a fixed labor unit; authority to 
courts to settle these questions; insurance departments and pensioning 
of employes; fixing hours of labor and minimum rates of wages by 
statute; change in law of liability of master to servant; and various 
suggestions for relief, outside of any legislative action, through educa- 
tional methods tending to the inculcation of mutual forbearance and 
just consideration of each other's rights in the premises. 

The commission deems recommendations of specific remedies prema- 
ture. Such a problem, for instance, as universal government owner- 
ship of railroads is too vast, many-sided, and far away, if attempted, to 
be considered as an immediate, practical remedy. It belongs to the 
socialistic group of public questions where government ownership is 
advocated of monopolies, such as telegraphs, telephones, express com- 
panies, and municipal ownership of waterworks, gas and ele 



CHICAGO STRIKE. 47 

lighting-, and street railways. These questions are pressing more 
urgently as time goes on. They need to be well studied and consid- 
ered in every aspect by all citizens. Should continued combinations 
and consolidations result in half a dozen or less ownerships of our rail- 
roads within a few years, as is by no means unlikely, the question of 
government ownership will be forced to the front, and we need to be 
ready to dispose of it intelligently. As combination goes on there 
will certainly at least have to be greater government regulation and 
control of quasi-pnblic corporations than we have now. 

Whenever a nation or a state finds itself in such relation to a rail- 
road that its investments therein must be either lost or protected by 
ownership, would it not be wise that the road be taken and the experi- 
ment be tried as an object lesson in government ownership? The 
Massachusetts Railroad Commission, which is noted for its eminent 
services as a conservative pioneer in the direction of government con- 
trol of railroads through the force of rjublic opinion, for several years 
urged that the experiment of state ownership be tried with the Fitch- 
burg system, because of the large state investment in the Hoosac tun- 
nel. We need to fear everything revolutionary and wrong, but we 
need fear nothing that any nation can successfully attempt in direc- 
tions made necessary by changed economic or industrial conditions. 
Other nations under their conditions own and operate telegraphs and 
railroads with varying results. Whether it is practicable for this 
nation to do so successfully when it becomes necessary to save an 
investment or when the people determine it shall be done, is an open 
and serious question which can not be answered fully except by actual 
experiment. 

We ought now to inaugurate a permanent system of investigation 
into the relations between railroads and employes in order to prepare 
to deal with them intelligently, and that we may conservatively adopt 
such remedies as are sustained by public opinion for defects or wrongs 
that may from time to time appear. In the long contest between ship- 
pers and railroads penal and specific legislation proved inadequate. 
The lessons of this period of legislation need to be well remembered 
by labor. Hasty, revengeful, and retaliatory legislation injures every 
interest, benefits nobody, and can not long be enforced. 

The question of the right of Congress to legislate in regard to the 
conditions of employment and service upon railroads engaged in inter- 
state commerce is a most important one, and the right seems by analogy 



CHICAGO STRIKE. 

to exist. Similar power as to rates, discriminations, poolings, etc., has 
been exercised in the act to regulate commerce, and has been sus- 
tained by the courts. The position of railroads as quasi-public cor- 
porations subjects them and their employes to this power, and imposes 
its exercise upon Congress as a duty, whenever necessary for the 
protection of the people. The question of what shall be done is there- 
fore one of expediency and not of power. When railroads acted as 
judge and jury in passing upon the complaints of shippers, the people 
demanded and Congress granted a government tribunal where ship- 
pers and railroads could meet on equal terms and have the law adjust 
their differences. In view of the Chicago strike and its suggested 
dangers, the people have the same right to provide a government com- 
mission to investigate and report upon differences between railroads and 
their employes, to the end that interstate commerce and public order may 
be less disturbed by strikes and boycotts. Public opinion, enlightened 
by the hearings before such a commission, will do much toward settling- 
many difficulties without strikes, and in strikes will intelligently sustain 
the side of right and justice and often compel reasonable adjust- 
ments. Experience, however, has taught that public opinion is not 
alone powerful enough to control railroads. Hence power to review and 
enforce the just and lawful decisions of the commission against rail- 
roads ought to be vested in the United States courts. There can be no 
valid objection to this when we bear in mind that we are now dealing 
simply with quasi public corporations and not with either individuals 
or private corporations. What is safe' and proper as to the former 
might be unsafe and unjust for the latter. Thfrt which is done under 
the act to regulate commerce as to rates can safely and ought properly 
to be done as to railroad wages, etc., by a commission and the courts. 

Some stability and t^ine for conciliation and amicable adjustment of 
disputes can also be secured by providing that labor unions shall not 
strike pending hearings which they seek; and that railroads shall not 
discharoe men except for cause during hearings, and for a reasonable 
time thereafter. A provision may well be added requiring employes 
during the same period to give thirty days' notice of quitting and for- 
bidding their unions from ordering or advising otherwise. 

Many assert with force that no law can be justly devised to compel 
employers and employes to aecept the decisions of tribunals in wage 
disputes, tt is insisted that while the employer can readily be made 
to pay under an arbitration decision more than is or than he thinks is 



CHICAGO STRIKE. 49 

right, the employe can not practically be made to work. He can quit, 
or at least force his discharge, when the decision gives him less than 
lie demands. Hence nothing reciprocal can be devised, and without 
that element it is urged that nothing just can be enacted of a compul- 
sory nature. This may be true in general industries, but it has less 
weight as between railroads and their labor. Railroads have not the 
inherent rights of employers eu gaged in private business; they are 
creatures of the state, whose rights are conferred upon them for public 
purposes, and, hence, the right and duty of government to compel them 
to do in every respect what public interest demands are clear and free 
from embarrassment. It is certainly for the public interest that rail- 
roads shall not abandon transportation because of labor disputes, and, 
therefore, it is the duty of the government to have them accept the 
decision of. its tribunals, even though complete reciprocal obligations 
can not be imposed upon labor. The absence of such reciprocal obli- 
gations would rarely affect railroads unjustly, if we regard the question 
in a practical light. 

Railroad employment is attractive and is sought for. There has 
never been a time in the history of railroads when men did not stand 
ready to fill a labor vacancy at the wages fixed by the roads. The 
number is constantly increasing. If railroads can thus always get the 
men that they need at what they offer, is there any doubt that the 
supply will be ample at any rates fixed by a commission and the courts? 
A provision as to notice of quitting, after a decision, would be ample 
to enable railroads to fill vacancies caused in their labor departments 
by dissatisfaction with decisions. To go further, under present con- 
ditions, at least, in coercing employes to obey tribunals in selling their 
labor would be a* dangerous encroachment upon the inherent, inaliena- 
ble right to work or quit, as they please. 

When railroad employes secure greater certainty of their positions 
and of the right to promotion, compensation for injury, etc., it will be 
time enough to consider such strict regulation for them as we can now 
justly apply to railroads, whose rights are protected by laws and 
guarded by all the advantages of greater resources and more conr^ 
trated control. 

In solving these questions, corporations seldom aid the efforts of the 

people or their legislators. Fear of change and the threatened loss of 

some power invariably make them obstructionists. They do not desire 

to be dealt with by any legislation ; they simply want to be let alone, 

7787 4 



50 CHICAGO STRIKE. 

confident in their ability to protect themselves. Whatever is right to 
be done by statutes must be done by the people for their own protec- 
tion, and to meet the just demand that railroad labor shall have public 
and impartial hearing of all grievances. 

The commission does not pretend to present a specific solution of these 
questions. Its effort is simply to present the facts ; to point out that 
the relations of capital and labor are so disturbed as to urgently demand 
the attention of all thinking and patriotic citizens ; to suggest a 
line of search for practical remedial legislation which may be followed 
with safety, and, fiually, to urge and invite labor and railroads to hearty 
cooperation with the government and the people in efforts to substi- 
tute law and reason in labor disputes for the dangers, sufferings, 
uncertainties, and wide-spread calamities incident to strikes, boy- 
cotts, and lockouts. 

To secure prompt and efficient data for the formation of correct 
public sentiment in accordance with this line of thought, the commission 
contends that law should make it obligatory upon some public tribunal 
promptly to intervene by means of investigation and conciliation, and 
to report whenever a difficulty of the character of that occurring dur- 
ing the past season at Chicago arises. This intervention should be 
provided for, first, when the tribunal is called upon to interfere by 
both of the parties involved; second, when called upon by either of the 
parties, and, third, when in its own judgment it sees fit to intervene. 
The proper tribunal should have the right, in -other words, to set 
itself in motion, and rapidly, too, whenever in its judgment the public 
is sustaining serious inconvenience. If the public can only be edu- 
cated out of the belief that force is and must always remain the basis 
of the settlement of every industrial controversy the problem becomes 
simplified. A tribunal, however, should not intervene in mere quar- 
rels between employer and employed, unless the public peace or con- 
venience is involved; but where it is a clear case of public obstruction, 
whether caused by individuals or by a corporation, a tribunal should 
not wait until called on by outside agencies to act. All parties 
concerned should be notified that the tribunal proposes, upon a 
certain day — and the earlier the day the better — to be at a given 
place, there to look into the cause of the trouble, to adjust the difficul- 
ties by conciliation, if possible, and, in the event of failure, to fix the 
responsibility for the same. Proceeding in this way the report of such 
a commission would cause public opinion promptly to settle the ques- 



CHICAGO STRIKE. 51 

tion, or, at least, to fix the responsibility where it belonged, and to 
render snecessful opposition to the eonclusions reached an improba- 
bility.' To carry out this idea involves no complicated legislation. 

As authorized by statute, the commission has decided upon certain 
recommendations and certain suggestions, growing out of its study of 
the Chicago strike and boycott. These recommendations and sugges- 
tions are upon three lines: First, for Congressional action; second, for 
state action; and third, for the action of corporations and labor organ- 
izations. It readily sees the impropriety to a certain extent of making 
any recommendation for state action, yet feels it a duty, as a result 
of its investigations, to make such suggestions as will enable citizens 
interested in state legislation to benefit by its experience, and also to 
make such suggestions to corporations and labor organizations as shall 
tend to harmonize some of the existing difficulties. The commission 
therefore recommends: 

I. 

(1) That there be a permanent United States strike commission of 
three members, with duties and powers of investigation and recom- 
mendation as to disputes between railroads and their employes similar 
to those vested in the Interstate Commerce Commission as to rates, etc. 

a. That, as in the interstate commerce act, power be given to the 
United States courts to compel railroads to obey the decisions of the 
commission, after summary hearing unattended by technicalities, and 
that no delays in obeying the decisions of the commission be allowed 
pending appeals. 

b. That, whenever the parties to a controversy in a matter within the 
jurisdiction of the commission are one or more railroads upon one side 
and one or more national trade unions, incorporated under chapter 567 
of the United States Statutes of 1885-'86, or under state statutes, upon 
the other, each side shall have the right to select a representative, who 
shall be appointed by the President to serve as a temporary member of 
the commission in hearing, adjusting, and determining that particular 
controversy. 

(This provision would make it for the interest of labor organizations 
to incorporate under the law and to make the commission a practical 
board of conciliation. It would also tend to create confidence in the 
commission, and to give to that body in every hearing the benefit of 
practical knowledge of the situation upon both sides.) 



52 CHICAGO STRIKE. 

c, That, during the pendency of a proceeding before the commission 
inaugurated by national trade unions, or by an incorporation of 
employes, it shall not be lawful for the railroads to discharge employes 
belonging thereto except for inefficiency, violation of law, or neglect of 
duty; nor for such unions or incorporation during such pendency to 
order, unite in, aid, or abet strikes or boycotts against the railroads 
complained of; nor, for a period of six months after a decisiou, for such 
railroads to discharge any such employes in whose places others shall 
be employed, except for the causes aforesaid; nor for any such employes, 
during a like period, to quit the service without giving thirty days' 
written notice of intention to do so, nor for any such union or incor- 
poration to order, counsel, or advise otherAvise. 

(2) That chapter 567 of the United Stales Statutes of 1885-'86 be 
amended so as to require national trades unions to provide in their 
articles of incorporation, and in their constitutions, rules, and bylaws 
that a member shall cease to be such and forfeit all rights and privi- 
leges conferred on him by law as such by participating in or by insti- 
gating force or violence against persons or property during strikes or 
boycotts, or by seeking to prevent others from working through vio- 
lence, threats, or intimidations; also, that members shall be no more 
personally liable for corporate acts than are stockholders in corpor- 
ations. 

(3) The commission does not feel warranted, with the study it has 
been able to give to the subject, to recommend positively the establish- 
ment of a license system by which all the higher employes or others of 
railroads engaged in interstate commerce should be licensed after due 
and proper examination, but it would recommend, and most urgently, 
that this subject be carefully and fully considered by the proper com- 
mittee of Congress. Many railroad employes and some railroad officials 
examined and many others who have filed their suggestions in writing 
with the commission are in favor of some such system. It involves too 
many complications, however, for the commission to decide upon the 
exact plan, if any, which should be adopted. 

II. 

(1) The commission would suggest the consideration by the states of 
the adoption of some system of conciliation and arbitration like that, 
for instance, in use in the commonwealth of Massachusetts. That 
system might be reenforced by additional provisions giving the board 



CHICAGO STRIKE. 53 

of arbitration more power to investigate all strikes, whether requested 
so to do or not, and the question might be considered as to giving labor 
organizations a standing before the law, as heretofore suggested for 
national trade unions. 

(2) Contracts requiring men to agree not to join labor organizations 
or to leave them, as conditions of employment, should be made illegal, 
as is already done in some of our states. 

III. 

(1) The commission urges employers to recognize labor organi- 
zations; that such organizations be dealt with through representatives, 
with special reference to conciliation and arbitration when difficulties 
are threatened or arise. It is satisfied that employers should come in 
closer touch with labor and should recognize that, while the interests 
of labor and capital are not identical, they are reciprocal. 

(2) The commission is satisfied that if employers everywhere will 
endeavor to act in concert with labor; that if when wages can be 
raised under economic conditions they be raised voluntarily, and that 
if when there are reductions reasons be given for the reduction, much 
friction can be avoided. It is also satisfied that if employers will con- 
sider employes as thoroughly essential to industrial success as capital, 
and thus take labor into consultation at proper times, much of the 
severity of strikes can be tempered and their number reduced. 



v OF c . 

BINDERY 
1903 



